Ed Butowsky is an internationally recognized expert in the investment wealth management industry. Ed Butowsky has been in the financial services industry for over 22 years. He is also a frequent guest on CNN, ABC, CBS, NBC, Fox Business News, FOX News Channel, and Bloomberg TV. Ed Butowsky is often seen on Varney and Co., Willis Report, America’s News HQ as well as Taking Stock with Pimm Fox. Ed is also regularly heard on radio shows around the country such as Mad Dog Radio and Bloomberg Radio discussing wealth management, economics, and other timely subjects that are of interest to the finance/investments world. Ed Butowsky was featured as a financial expert and coach in the first-of-its-kind online reality series, The Invested Life, which follows real people who face today’s most common money concerns and their journey to taking control of their finances.
What is happening in our industry, in my mind, is criminal. Investing has become more of a game of PR and image than the facts. What I saw going on out there just made me sick to my stomach. Because you had portfolios that were so far out of balance, and they still are today, and they’re still being sold today.
Chapwood Forensics’ analysis-which the company offers free of charge-can be boiled down to three key questions: what is my portfolio’s historical rate of return versus its standard deviation? What is the Sharpe Ratio of my portfolio, and what should it be? What are the total fees being charged? (The answers, in order: 60 percent or less, one or higher, and 1 percent or less.) It is OK if you don’t understand the answers. It is OK if you don’t even understand the questions. Ed Butowsky understands. “Because it’s confusing, people don’t talk about it,” he says. “But because it’s confusing doesn’t mean it shouldn’t be talked about.”
Because it’s confusing, people don’t talk about it. But because it’s confusing doesn’t mean it shouldn’t be talked about.
Confusion is Ed Butowsky’s biggest enemy. He tells a story about a young NFL player whose financial advisor told the player he couldn’t say how much he was being charged to manage his tax-exempt bonds because of the Patriot Act. “The player said, “Oh, he can’t tell me because of the Patriot Act,” Ed Butowsky says. “I said, “That’s not true. Will you please tell us?” He said, “No, I can’t tell you.” Turns out, he’s being charged 2 percent to manage his tax-exempt bonds. But the financial advisor told him what? It doesn’t matter how much we charge you because you can write it off. Well, guess what? When we do our forensics, we do a lot more detail work. You can’t write off the money management of tax-exempt bonds. So this guy is being charged $146,000 more a year than he should be.”
Read more about Ed Butowsky on Chapwood Investments.